Accounting-Pest Analysis-Political Essay

PEST depth psychologyPoliticalThe internationalist IT and electronics industries pass been characterized with intensive challenger. Electronics and IT companies are constantly reviewing their achievements as well as the competitors in assign to come up with wear out business strategies in an effort to best all impertinent(prenominal) existing industry rivals. With the unification and acquisition strategy amid HP and Compaq, members of the IT and electronics industry all e very(prenominal)where the world were threatened with the intensified effort that could force from the integration. Others were surprised beca pulmonary tuberculosis mergers and acquisition strategies may to a fault effect to negative implications on the part of the merging companies particularly when differences in the context of strategies, culture and goals fail to be fully integrated.EconomicFor HP and Compaq, the merger give increase the competitiveness of the previously independent companies in or der to outdo the achievements of highly aggressive competitors. Both HP and Compaq sought means to add harbor to their existing products and service in order to increase the level of satisfaction among their clients and guests which were made possible with the merger. Once satisfaction levels among clients and clients are met, HP-Compaq expect better economic competitiveness within the international IT and electronics industry. aff suitableThe existing companies have been on guard when it comes to new food market place trends, new market opportunities, new customer bases, and technological infrastructure available for utilization. The merger amid HP and Compaq will most likely result to better social activities as sponsored by the merged companies. Social and civic activities that were previously independently support by HP and Compaq will be carried out in new perspective due in the main to the fact that the merger could expose unexpected factors that could make the new tel ephoner unstable.TechnologicalOne of the autochthonic reasons for the merger of HP and Compaq are the companies drive towards creation and development in their products and services. The merger enabled relatively stronger search and development efforts for thebenefit of the new company since it is presently characterized with to a greater extent than intensive concerns to come up with IT products and services that will cater to existing as well as new clients and customers thereby increasing the companies consumer bases. At present the electronics products of HP have been observed to undergone evolution with the support facilities which were made available by Compaq. five Forces AnalysisSuppliersThe merger resulted to review and assessment of the existing suppliers of most(prenominal) HP and Compaq since the integration strategy implied the relatively fewer contracts between companies that provide similar services and raw materials to HP and Compaq. However, the integration overly resulted to innovation in technology which necessitated new contracts with suppliers that can provide the new services and raw materials needed by HP-Compaq as a single corporation.BuyersWith the promised added value on the products and services of the HP-Compaq merger, clients and customers of the company could expect new and better product lines and service offers as one of the primary objectives of the integration strategy. Buyer power will be intensified in this respect since the HP-Compaq will be offering new electronics products and services in order to set new market trends in the international IT and electronics industry.CompetitorsCompetitors of HP and Compaq were somehow divided when it comes to the overall implications of the merger to the international IT and electronics industry. There are those who believe that the merger will result to the continuous weakening of both companies compared to their early(a) stronger competitors in the international IT and elect ronics industries. While some believe otherwise due to the increased capacitance of HP and Compaq as a single operating company to build up and strengthen the market positions in the future years that will come.SubstitutesSubstitute products and services are increasing within the international IT and electronics industry which contri notwithstandinged to the integration decisionbetween HP and Compaq. With the conglomerate efforts between the new HP-Compaq corporation, it is expected the assuagement products and services that competes with the provisions and offers of HP-Compaq will be lessen due to better production and manufacturing processes and technological infrastructures that cannot be afforded by small rival companies.New EntrantsNew entrant in the electronics and IT industries are confronted with relatively more difficult entry to the international market due primarily to highly aggressive competition between and among large corporations. It is common knowledge that busine ss operations and facilities that characterize both the international IT and Electronics industries are very expensive and sophisticated. Such factors serve as strong barriers of entry to the industries where HP-Compaq belongs.SWOT AnalysisStrengthsThe merger between HP and Compaq will increase the companies competitiveness when it comes to the possible new product lines and services that they will offer as a single company to the clients and customers. The integration strategy likewise resulted fewer market competition within the context of large international corporations that also belong to the international IT and electronics industry. Costs will be reduced as expenditures in business operations such as manufacturing and production are now handled and managed as a single proprietorship. The research and development arm of HP and Compaq can now lean together as single company with similar technological and economic goals.WeaknessesThe integration strategy between HP and Compaq, on the other hand, resulted to the need to lay off thousands of employees since their services will be no longer needed particularly those who have similar functions. Cultural integration within the workplace is also a serious issue since HP and Compaq are composed of contrary individuals and employees who are used to polar working environments as well as career expectations. The Human resource department will be confronted with problems and issues regarding the new members of the companys workforce. Technical operations will alsoexperience drawbacks from the changes that will flow within the business processes of the company.OpportunitiesThe issues and problems that may result from the merger in terms of workforce differences can be perceived as an avenue fro improvement when it comes to workplace culture of the company. The management should be able to catch means to exhaust diverse knowledge and skills that characterize the members of the companys labor force. Operations shou ld likewise be restructured and reengineered in order to come up with better manufacturing and production processes that take into account skill and product quality.ThreatsThe failure of the merger strategy is also possible if HP and Compaq are not able to resolve issues caused by differing workplace cultures. The vulnerability of the merged company is likewise exposed since it is only a couple of years since the merger contract was signed. There is still so much to do for the full implementation of the merger strategy and existing competitors will aggressively take the opportunity of the changes that transpired within the new HP-Compaq company. Both internal and external factors may contribute to the challenges and difficulties that HP-Compaq will experience in the future in the effort to succeed in the international market competition.StrengthsHewlett-Packards primary strength is its business position. The first step has a large amount of cash in hand about $10 billion. Hewlett- Packard is a worldwide enterprise and especially after its merger with Compaq, the company became worlds biggest computer hardware and peripherals harmonise in the world and has ranked 20th in the Fortune 500 list. Hewlett Packard is operating in more than 170 countries including both developed as well as under-developed. Being a global corpus of computer hardware, it gives HP umteen advantages like dominating printers market, both laser and inkjet.The company attracts and focuses on consumers from counterbalance newly found markets all around the world, multinational corporations, non-governmental organizations etc. The company compete both at local and international level. It has increased its competitiveness through policies and strategies that supports free-market economies. This is one of the reasons that make HP a leaderssupplier in the growing IT markets. Hewlett Packard is said to have a complete product portfolio. WeaknessesThe company was in a long term debt for many years which kept it from investing in different growth opportunities. A major problem and complaint about the hardware supplies of HP is its undertone pads. The touch pads of the notebooks of Hewlett Packard like the dv series, dm3, and Envy lines needs improvement. These touch pads are either finicky, unreliable, or are difficult to use because of friction. The mouse buttons on various HP supplied machines are said to be clumsy to use, too. Poor stamp battery life of HP products plagued some mainstream systems and net books. When it comes to Software that HP provides there are also some impuissancees. Some heavy softwares were paired with slow hardware like Touch Smart. The ancient acquisition of Peregrine made the HPs portfolio even more diverse and complete but HP Open Views lack of mainframe management capabilities created several problems. Another weakness was that it did not yet hit a CMDB product that includes discovery and mapping. This cause many customers to switch the brand.OpportunitiesThe late acquisition of EDS puts HP at a strong position in the computer market and makes it portfolio more impressive. Hewlett-Packard was able to generate large number of revenues and profits from its different deals and raised more than half-dozen billion which it can use to pay off its debts as well as invest in different research and development activities. If the products by the company are supplied at reasonable prices, there will be more chances of growth as the demand would increase. The company has formed Customer Solutions Group that helps in selling the complete IT solutions, products and services by HP.ThreatsOperating in global market means many competitors and therefore, the company has to be at the forefront of changing technologies as well as addressing the changing customer demands and needs. The global economic recession is also a threat for the companys sales and profits. The prices have also fallen as the stock markets are at historic low p ositions. Many other competitors including Dell are entering the printer business whereas IBM hasbecome a market leader.